Between brokers fees & management fees those can easily drain half the value of a mutual fund over 30 years.
You don’t need 1-3% in fees to get lower ROI than a passive index fund with 0.25% MER. But a salesman at a bank will absolutely tell you otherwise.
It is terrible advice. And it’s less terrible than advising them to go to a bank.
I’m sorry but you’re misinformed. When you walk into a bank and ask for financial advice those employees are NOT liable in Canada nor are they required to have full certifications.
They have no fiduciary duty to you and in fact they are PUNISHED for not scamming effectively or often enough for the banks. They have performance quotas to meet that are misaligned with their customers interests.
Pay for someone who is actually qualified.
As for why 1-2% MER actively managed funds pushed by banks can drain roughly half of your retirement savings there’s tons of info out there on how compounding effects work and the downsides of active management.
I encourage you to go pay for a qualified financial planner. It sounds like you’ve been lead astray.
other than the broker fees
EXACTLY. Do you know what compound interest is?
Yes necessarily. If you have the ability to determine whether they’re pulling the wool over your eyes then you might as well just advise yourself at that point.
Even the internet is often a better place to get advice than an advisor at a Canadian bank who’s job performance is intimately tied with how efficiently he can scam you.
Also, I didn’t say independent financial advisor. You should also not go for advisors who are independent but charge some management fees in exchange for controlling your investments. I said flat fee financial advisor.
A flat fee financial advisor isn’t going to sell you a scam mutual fund with 2% MER or advise you to take out a large debt you will not benefit from. They are paid by you and accountable to you with no authority to skim off the top of your assets. Those mutual funds you say are fine often rob people of half their retirement savings over the course of decades due to compounding effects.
You want to get advice ideally from those who have a fiduciary duty to YOU such that their interests are aligned with yours. Failing that, you want someone who has no stake in your money.
It’s those fuckin’ junimos bro…
DO NOT take advice from financial advisors at banks in Canada. They are unregulated sales people paid to give advice that serves the interest of their employer.
The only people OP should consider taking professional advice from are flat-fee financial advisors. They will not find them at banks. And they must be flat fee.
If OP is not paying for the advice up front the advice is not going to be in OPs best interest.
That first part is where I’m stuck lol. I am fine with maintaining a good ratio but have limited bandwidth to pass a big exam or get in with the right crowd socially…
I’ve heard it’s best to just buy a domain for your email for hopscotch reasons
That’s so wholesome 🥺 thanks!
Yooo is that actually a storyline in the game? Cutee
Alex.
I’m a trans woman with a problematic attraction to any man who would’ve bullied me in high school.
Before you ask—yes, I am aware this is the only reason anybody ever marries Alex.
I guess I shouldn’t be surprised given the complexity of the problem. But all of these points in one article seem quite overwhelming.
Personally I think access to family doctors and stronger communities (get people off their phones and talking to their neighbours) would fix the lions share of these issues.
Reproductive health needs to be protected. Well honestly it’s insane to me that it’s not a given. What the hell sort of dystopian society are we devolving into.
We should be explicit about some things:
Using AI is very different from developing AI.
any year is better than a future year
Not true for everybody. Sometimes people decide to put off transition for practical or safety reasons. They aren’t necessarily wrong for doing so. Earlier is not always better.
It’s okay I’m a millennial too…
it shouldn’t be a surprise
Yes it should. The working class is supposed to get compensated fairly for increases in productivity.
Through no fault of anyone
Billionaires are right there.
This is a great tip. But also SDV is so affordable given the value
Concerned Ape is such a wholesome developer who keeps giving us content so I have no issue paying full price on every platform
Great. And they need to start hosting publicly funded fediverse instances too.
No, a mutual fund with 1-2% MER is not the same as an ETF with 0.25% MER. One of them steals half your money while the other does not.
Believe it or not it is very financially lucrative to drain up to half of people’s retirement funds while disguising it under opaque language they know people won’t understand (like MER, brokerage fees) while “”justifying”” their fees with hopes that they would outperform the market (which they don’t).
Sorry to break it to you but your parents were raised in a world where we had less data on these things. We now know their work over the years drained people of their money and siphoned it up to banks.
They didn’t need to be conscious of it for that to be the effect. That’s simply what happens. And because these are risk adjusted opportunity costs people don’t know better.
Moreover your parents worked in a market when 0.25% MER All in One ETFs didn’t exist. So it’s a moot point.